Indian Economy Questions

Q:

Trickle down theory ignores the impact of economic growth on

A) Investment B) Savings
C) Income distribution D) consumption
 
Answer & Explanation Answer: C) Income distribution

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Q:

Which among the following is not an instrument of fiscal policy?

A) Taxation B) Public expenditure
C) Public debt D) Credit Rationing
 
Answer & Explanation Answer: D) Credit Rationing

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Q:

Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand is called

A) Structural unemployment B) Frictional unemployment
C) Seasonal unemployment D) Cyclical unemployment
 
Answer & Explanation Answer: A) Structural unemployment

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Q:

Disguised unemployment in India is mainly related to

A) Agricultural sector B) Rural Area
C) Factory sector D) Urban Area
 
Answer & Explanation Answer: A) Agricultural sector

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Q:

If the break­even quantity for a factory whose variable cost of manufacturing a cell is Rs. 15 and selling price is Rs. 24 is 2,400 units, find the fixed cost of the factory?

A) Rs. 21600 B) Rs. 36000
C) Rs. 57600 D) Rs. 14400
 
Answer & Explanation Answer: A) Rs. 21600

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Q:

Depreciation is loss in value of ________

A) Final goods B) Machinery
C) Capital stock D) Stock of inventory
 
Answer & Explanation Answer: B) Machinery

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Q:

Which among the following is not an account under Balance of Payment?

A) Current Account B) Capital Account
C) Official Reserves Account D) Unilateral Payments Account
 
Answer & Explanation Answer: C) Official Reserves Account

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Q:

What will you call a system of taxation under which the poorer sections are taxed at higher rates than the richer sections?

A) Progressive tax B)  Proportional tax
C) Regressive tax D)  Degressive tax
 
Answer & Explanation Answer: C) Regressive tax

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